HomeMy WebLinkAboutCC Reso 2022-43 RESOLUTION NO. 2022-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY, CALIFORNIA, ESTABLISHING AN EXEMPTION TO THE
CANNABIS TAX FOR PORTIONS OF CANNABIS CULTIVATION SPACE
WHERE CANNABIS IS NOT PHYSICALLY PRESENT PURSUANT TO
SECTION 3.48.040 OF THE CATHEDRAL CITY MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY FINDS:
A. At the November 2016 general election the voters approved Measure P, which
imposes the following taxes on cannabis businesses in the City:
• Fifteen cents for each one dollar of gross receipts or fractional part thereof
received by a dispensary or by any other cannabis business for activities
other than cannabis cultivation or manufacturing.
• Twenty-five dollars for each square foot or fractional part thereof of
cannabis cultivation space.
• One dollar for each gram of cannabis concentrate produced or
manufactured.
• One dollar for each unit of cannabis-infused product other than cannabis
concentrate produced or manufactured and packaged or intended for
individual sale.
B. Measure P authorizes the Council to set the taxes on cannabis at lower
rates than what was approved by the voters, and to establish exemptions, incentives, or
other reductions.
C. Via City Council Resolution Nos. 2017-13, 2018-46, 2019-02, and 2020-05
the City Council has lowered the cannabis tax rates.
D. The City Council now desires to exempt from the cannabis cultivation tax
portions of the cannabis cultivation space where cannabis is not physically present, as
provided herein.
THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY RESOLVES:
SECTION 1. The gross square footage of the cannabis cultivation space, as
defined in the Cathedral City Municipal Code (`CCMC") Section 3.48.020, subject to
taxation pursuant to Chapter 3.48 of the CCMC shall be reduced to exempt from taxation
those rooms where cannabis is not physically present on a regular basis, including but
not limited to nutrient rooms, storage rooms, hallways, offices, employee lounges, and
restrooms.
SECTION 2. The exemption provided in Section 1 of this Resolution becomes
effective for each licensee upon the renewal of each cultivation license or upon
issuance of any new cultivation license.
SECTION 3. This Resolution shall take effect immediately.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Cathedral City held on this 10th day of August, 2022, by the following vote:
Ayes: Councilmembers Gregory, Ross and Carnevale; Mayor Pro Tem
Lamb and Mayor Gutierrez
Noes: None
Absent: None
Abstain: None
i
rnesto Gutierrez, Mayor
ATTEST:
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Tracey R.lie mosillo, City Clerk
APPROV T O
Eric S. Vail, City Attorney